USD/JPY moves back to near session lows, trading at 106.04 currently
Price has moved lower from around 106.15-20 earlier to near the 106.00 handle currently as bonds continue to stay bid, leading to a fall in yields. US Treasury 10-year yields just fell to a low of 1.702%, down by more than 2 bps on the session.
This comes despite equities looking more buoyant and markets taking in a calmer mood from gains in the Chinese yuan earlier in the day.
Of note, USD/JPY failed to move above the 100-hour MA (red line) and sellers are still keeping near-term control as such.
On days like these, just be mindful of any gains being posted by risk assets. If there’s ever any one thing to follow in markets is that you just don’t argue with the bond market.
All this is telling that it only takes one negative headline to quickly turn greed into fear.